UTI Equity Fund- 25 years of Wealth Creation and Prosperity..!

UTI Equity Fund was launched in May 1992 and has
completed 25 years of Wealth Creation. The
Scheme has withstood the changing
weather of the Indian economy, from liberalization to digitization.

UTI Equity Fund is an open end equity scheme
having a corpus of Rs.5344 crore (as on April 30, 2017) and 7.68 lakh investor
accounts (as April 30, 2017). The scheme
primarily aims at securing for the unitholders capital appreciation by investing
the funds of the scheme in equity shares and convertible and non-convertible
bonds/debentures of companies with good growth prospects and money market
instruments.

UTI
Equity Fund is a predominantly large-cap focused scheme with 86 per cent of its equity exposure in large-cap stocks as of April 30, 2017. The scheme’s top
holding consists of well known and researched companies like HDFC Bank, Yes
Bank, Indus Ind Bank, HDFC Ltd, ITC,
Infosys, Shree Cements , TCS, Kotak Mahendra Bank, ICICI Bank ,Sun Pharmaceuticals and Maruti
Suzuki India Ltd. which accounts for 56%
of the portfolio.

The
scheme has a proven track record for 25 years and has paid out total dividend
of Rs.798 crore during the past 25 years.UTI Equity Fund has generated a return
(CAGR) of 12.18% against benchmark return of 10.09% since inception (as on
30.4.17). An amount of Rs.10000/- invested at inception has become Rs.1,76,297/- at the end of April 2017 as against Rs.1,10,236/-
as per benchmark-S&P BSE 100. The scheme has grown 17 times in the last 25
years.

The scheme’s consistent performance is also associated with
lower volatility or market risk (measured by standard deviation). The
volatility of 14.21 per cent is less compared to the S&P BSE 100 of 14.95
per cent over a one-year period ending
April 30, 2017.

Mr
Ajay Tyagi, Executive Vice President and Fund Manager of UTI Equity Fund said, “UTI
Equity Scheme follows a well-set Investment Strategy in respect of stock
selection and framework for prudent portfolio construction. Investment Strategy
involves picking of stocks with strong earnings quality (high operating cash
flow and high free cash flow characteristics) and those that can continue to
show strong growth into the foreseeable future, thus providing for compounding
of wealth. The scheme endeavours to pick high quality businesses in secular
growth Industries that can generate economic value through the cycles rather
than cyclical industries which are highly volatile.”

UTI Equity Fund is suitable for those equity
investors who are seeking long term capital growth through investment in equity
instruments of companies with good growth prospects.

UTI Equity Fund- 25 years of Wealth Creation and Prosperity..!
Reviewed by S. Chitra
on
June 14, 2017
Rating: 5 UTI Equity Fund- 25 years of Wealth Creation and Prosperity UTI Equity Fund was launched in May 1992 and has completed 25 ...